Bloomberg Intelligence analysts suggest that SIA could see a first-quarter boost from Lady Gaga’s upcoming solo concert in Singapore, the only Asian stop on her "Mayhem Tour." Scheduled for May, the event is expected to drive tourism and enhance the national carrier’s revenue and earnings for the quarter ending March 2026.

Analysts George Ferguson and Eric Zhu noted on Monday, March 17, that large-scale events historically stimulate inbound tourism demand in Singapore. They described such events as providing a "holiday-like boost" to the tourism sector. "Lady Gaga’s concerts, set for May 18-24 in Singapore, could significantly impact inbound tourism demand, comparable to a holiday," they said.

This phenomenon, often referred to as the "Taylor Swift effect," highlights how major events like concerts can substantially boost economic activity. Last year, Taylor Swift’s "Eras Tour" in March 2024 spurred Singapore’s economy, with international visitor arrivals surging to a post-pandemic high of 1.48 million.

The analysts added, "During Taylor Swift’s concerts in March 2024, inbound flight bookings surged to levels similar to the May Day holiday, particularly from key Asian markets like China and Japan." They also noted that SIA carried more passengers in March 2024 than during the peak summer months of July and August, with a load factor of 88%, the highest outside of December.

Beyond boosting airline traffic, Swift’s visit had a ripple effect, driving a 2.1% increase in retail sales in March 2024 and improving hotel metrics, including overall room revenue, average daily rate, occupancy, and revenue per available room.

Ferguson and Zhu pointed out, "Redeeming KrisFlyer miles for tickets can enhance profitability, as loyalty programs are typically among the most lucrative segments for global airlines."

On Tuesday morning, pre-sales for concert tickets began for Mastercard holders, with over 1.6 million people queuing. Additional pre-sales rounds, including one for SIA’s frequent flyer program members, will follow before tickets are opened to the public. The concerts will be held over four consecutive nights at Singapore’s National Stadium.

Strong Q3 Financial Performance

In its latest business update released in February, SIA reported a 146.7% surge in net profit to S$1.6 billion for the quarter ending December 31, 2024, up from S$659 million a year earlier. This was largely due to a S$1.1 billion one-time non-cash accounting gain from the merger of Air India and Vistara in November 2024.

Revenue for Q3 FY2025 rose 2.7% year-on-year to S$5.2 billion from S$5.1 billion. The airline expects healthy air travel demand in Q4 FY2025, despite competitive pressures, as yields and capacity normalize post-pandemic.

However, SIA’s February operational update showed a modest 0.5% year-on-year increase in passenger traffic, with demand easing after the Lunar New Year holiday. Scoot, its low-cost subsidiary, saw a 9.3% decline in passenger traffic, while SIA’s traffic grew by 3.6%.

SIA’s fiscal year ends in March. On Tuesday, its shares closed 0.1% lower at S$6.74, down S$0.01.

SIA up 0.3% at 3:50 p.m., Mar 19th.